The Reading Co

question 50

Multiple Choice

The Reading Co. has adopted a policy of increasing the annual dividend on its common stock at a constant rate of 3% annually. The last dividend it paid was $0.90 a share. What will the company's dividend be in six years?

• A) $0.90
• B) $0.93
• C) $1.04
• D) $1.07
• E) $1.11

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Definitions:

Primacy Effect

The tendency to remember information at the beginning of a list better than information in the middle or end.

Recency Effect

The tendency to better remember information that is encountered last in a series.

Salience Effect

Refers to the tendency of individuals to focus on items or information that stand out more noticeably or are more significant to them.

Depth of Processing

A theory suggesting the depth (shallow to deep) of mental processing affects memory recall; deeper processing leads to better recall.